Investors

Genco Shipping & Trading Limited Announces Fourth Quarter 2007 Financial Results

Feb 13, 2008

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Declares Increased Dividend of $0.85 per Share for Q4 2007 Increases 2008 Quarterly Dividend Target Rate to $0.85 per share Announces $50 Million Share Repurchase Program

NEW YORK, Feb. 13 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today reported its financial results for the three months and twelve months ended December 31, 2007.

The following financial review discusses the results for the three months and for the twelve months ended December 31, 2007 and December 31, 2006.

Fourth Quarter 2007 and Year-to-Date Highlights

  • Declared a dividend of $0.85 per share, based on Q4 2007 results, payable on or about March 7, 2008 to all shareholders of record as of February 29, 2008;
  • Excluding the $23.5 million gain on the sale of the Genco Commander, recorded net income of $33.5 million, or $1.17 basic and $1.16 diluted earnings per share;
  • Recorded net income of $56.9 million, or $1.99 basic and $1.98 diluted earnings per share;
  • Completed the acquisition of the six drybulk vessels from companies within Evalend Shipping Co. S.A. for an aggregate purchase price of $336 million;
  • Took delivery of the Genco Titus, one of the remaining six vessels from the nine vessel Metrostar transaction;
  • Completed the sale of the Genco Commander on December 3, 2007 and realized a gain of $23.5 million;
  • Paid a $0.66 per share dividend on November 30, 2007 based on Q3 2007 results; and
  • Increased our ownership of the outstanding stock of Jinhui Shipping and Transportation Limited to 19.4% through February 12, 2008.

Financial Review: 2007 Fourth Quarter

Excluding the $23.5 million gain on the sale of the Genco Commander, the Company recorded net income for the fourth quarter of 2007 of $33.5 million, or $1.17 basic and $1.16 diluted earnings per share. Net income was $56.9 million or $1.99 basic and $1.98 diluted earnings per share for the three months ended December 31, 2007. Comparatively, for the three months ended December 31, 2006 net income was $16.5 million or $0.65 basic and diluted earnings per share.

EBITDA was $72.2 million for the three months ended December 31, 2007 versus $26.7 million for the three months ended December 31, 2006.

Robert Gerald Buchanan, President, commented, "During 2007, Genco experienced significant success in important areas which benefited both the Company and its shareholders. First, we furthered our consolidation leadership by executing two acquisitions totaling 15 modern vessels that expanded our world-class fleet by 173% on a tonnage basis, improved the age of our fleet as well as diversified it to include Capesize vessels. Second, we advanced our commercial position by signing long-term contracts during the year for 19 vessels at attractive rates as management continues to take advantage of the robust market environment. Going into 2008, we are pleased to have taken delivery of the final vessel under our agreements to acquire six drybulk vessels from affiliates of Evalend Shipping Co. S.A. and remain on schedule to take delivery of two Capesize vessels, one later this month and the other later this year. With the combination of having approximately 80% of our fleet's estimated available days secured on contracts for 2008 and having two vessels with profit sharing agreements, we are in a strong position to provide shareholders with a high degree of earnings visibility while maintaining the ability to benefit from future rate increases."

Genco Shipping & Trading Limited revenues increased 84% to $65.7 million for the three months ended December 31, 2007 versus $35.7 million for the three months ended December 31, 2006, primarily due to the operation of a larger fleet.

The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet increased 52.4% to $31,140 per day for the three months ended December 31, 2007 compared to $20,435 for the three months ended December 31, 2006. The increase in TCE rates was due to higher charter rates achieved in the fourth quarter of 2007 versus the fourth quarter of 2006 for five of the Handysize vessels, four of the Panamax vessels, and three of the Handymax vessels in our current fleet. Furthermore, higher TCE rates were achieved in the fourth quarter of 2007 versus the same period last year due to the operation of four Capesize vessels, part of the Metrostar acquisition.

Total operating expenses decreased to $0.5 million for the three months ended December 31, 2007 from $17.2 million for the three-month period ended December 31, 2006 due to the gain on the sale of the Genco Commander, off-set by higher vessel operating expenses and depreciation and amortization due to the operation of a larger fleet. Vessel operating expenses were $8.1 million for the fourth quarter of 2007 compared to $5.9 million for the same period last year. The increase in vessel operating expenses was due to the operation of a larger fleet, as well as higher crewing and lube expenses. Our vessel operating expenses, which generally represent variable costs, will further increase as a result of the expansion of our fleet, as well as anticipated higher crewing and lube expenses going forward. Depreciation and amortization expenses increased to $11.6 million for the fourth quarter of 2007 from $7.3 million for the fourth quarter of 2006 as a result of the operation of a larger fleet. General and administrative expenses increased to $3.0 million from $2.1 million during the comparative period due to higher legal expenses, costs associated with higher employee non-cash compensation and other employee related costs. Management fees were $0.5 million for the three months ended December 31, 2007 and $0.4 million for the three months ended December 31, 2006, respectively, and relate to fees paid to our independent technical managers.

Daily vessel operating expenses grew to $3,824 per vessel per day during the fourth quarter of 2007 from $3,415 for the same quarter last year as a result of higher crew and lube expenses. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. For the years ended December 31, 2007 and 2006, the average daily vessel operating expenses for our fleet were $3,716 and $3,285 respectively. Based on estimates provided by our technical managers and management's expectations, we expect our 2008 DVOE budget to be $4,700 per vessel per day. As previously announced, the increased budget reflects the anticipated increased cost for crewing and lubes as well as the operation of our Capesize vessels.

Financial Review: Twelve months 2007

Net income was $106.8 million or $4.08 basic and $4.06 diluted earnings per share, for the twelve months ended December 31, 2007 compared to $63.5 million, or $2.51 basic and diluted earnings per share for the twelve months ended December 31, 2006. Included in net income for the twelve months ended December 31, 2007 is a $27.0 million total gain on the sales of the Genco Commander and the Genco Glory and a $3.6 million one time, non-cash deferred financing charge as a result of the retirement of our previous credit facilities.

Revenues increased 39.1% to $185.4 million for the twelve months ended December 31, 2007 compared to $133.2 million for the twelve months ended December 31, 2006 as a result of the operation of a larger fleet as well as higher TCE rates achieved. EBITDA was $161.1 million for the twelve months ended December 31, 2007 versus $100.8 for the twelve months ended December 31, 2006. TCE rates obtained by the Company increased 20.5% to $24,650 per day for the twelve months ended December 31, 2007 from $20,455 for the same period in 2006. Total operating expenses for the twelve months ended December 31, 2007 decreased to $54.3 million from $62.9 million for the twelve months ended December 31, 2006 primarily due to the $27.0 million total gain on the sales of the Genco Commander and Genco Glory, off-set by higher vessel operating expenses and depreciation and amortization due to the operation of a larger fleet. Daily vessel operating expenses per vessel were $3,716 versus $3,285 for the comparative periods.

Liquidity and Capital Resources

Cash Flow

Net cash provided by operating activities for the twelve months ended December 31, 2007 and 2006, was $120.9 million and $90.1 million, respectively. The increase was primarily due to the operation of a larger fleet, which contributed to increases in net income, depreciation, accounts payable, and deferred revenues, an unrealized loss of $1.4 million associated with the forward currency contracts in place at December 31, 2007, and cash outflows of $9.9 million associated with forward currency contracts used to hedge our Jinhui shareholdings. The increases were offset by an unrealized gain of $10.2 million on the currency translation associated with our investment in Jinhui Shipping & Transportation Limited, a $27.0 million gain related to the sale of the Genco Commander and the Genco Glory for the year ended December 31, 2007. Net cash provided by operating activities for the year ended December 31, 2007 was primarily a result of recorded net income of $106.8 million, less the gain from the sale of the Genco Commander and the Genco Glory of $27.0 million, plus depreciation and amortization charges of $34.4 million.

Net cash used in investing activities increased to $984.4 million for the year ended December 31, 2007 as compared to $82.8 for the year ended December 31, 2006. For the year ended December 31, 2007, cash used in investing activities related primarily to the purchase of $115.6 million of Jinhui stock, the purchase of vessels in the amount of $764.6 million, and deposits made on vessels to be acquired of $150.3 million. The increases were offset by total proceeds received from the sales of the Genco Commander and the Genco Glory of $56.5 million.

Net cash provided by financing activities for the years ended December 31, 2007 and 2006 was $861.4 million and $19.4 million, respectively. For the year ended December 31, 2007, net cash provided by financing activities consisted of the drawdown of $77.0 million related to the purchase of shares of Jinhui stock, the receipt of $213.9 million in proceeds from the follow-on equity offering, the drawdown of $1,193.0 million on our 2007 Credit Facility related to the completion of nine vessel acquisitions and deposits on six vessels to be acquired. This was offset by the refinancing of our prior credit facilities for $288.9 million and the repayment of $257.0 million under the 2007 credit facility and the payment of cash dividends of $69.6 million. For the year ended December 31, 2006, net cash used by financing activities consisted mostly of the payment of cash dividends of $61.0 million offset by $81.3 million of proceeds from our 2005 Credit Facility used to acquire three vessels.

Capital Expenditures

We make capital expenditures from time to time in connection with vessel acquisitions. Our current fleet consists of four Capesize drybulk carriers, seven Panamax drybulk carriers, three Supramax drybulk carriers, six Handymax drybulk carriers and eight Handysize drybulk carriers. After the sale of the Genco Trader and the delivery of the five remaining vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 32 drybulk vessels, consisting of nine Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,700,000 dwt.

In addition to acquisitions that we may undertake in future periods, we will incur additional capital expenditures due to special surveys and drydockings for our fleet. We estimate that one vessel will be drydocked during the first quarter of 2008.

An additional six vessels are estimated to be drydocked in 2008 and five in 2009. We estimate our drydocking costs for our fleet through 2009 to be:

                                  Q1 2008     Q2 - Q4 2008          2009

    Estimated Costs (1)         $0.5 million  $4.1 million      $3.7 million
    Estimated Offhire Days (2)     20             120               100

    (1) Estimates are based on our budgeted cost of drydocking our vessels in
        China.  Actual costs will vary based on various factors, including
        where the drydockings are actually performed.  We expect to fund these
        costs with cash from operations.
    (2) Assumes 20 days per drydocking per vessel.  Actual length will vary
        based on the condition of the vessel, yard schedules and other
        factors.

The Genco Surprise completed its drydocking during the fourth quarter of 2007 at a cost of approximately $0.9 million.

Announcement of Share Repurchase Authorization

The Company also announced that its Board of Directors has approved a share repurchase program for up to a total of $50 million of the Company's common stock. The Board will review the program after 12 months. Share repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the program will be determined by management based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company's discretion and without notice. Repurchases will be subject to restrictions under our $1.4 billion credit facility.

Summary Consolidated Financial and Other Data

The following table summarizes Genco Shipping & Trading Limited's selected consolidated financial and other data for the periods indicated below.

                         Three Months Ended           Twelve Months Ended
                       December 31,  December 31,   December 31,  December 31,
                            2007         2006           2007          2006
                   (Dollars in thousands, except (Dollars in thousands, except
                      share and per share data)    share and per share data)
                             (unaudited)           (unaudited)
    INCOME STATEMENT
     DATA:
    Revenues              $65,690       $35,715       $185,387       $133,232

    Operating expenses:
      Voyage expenses         817         1,490          5,100          4,710
      Vessel operating
       expenses             8,086         5,881         27,622         20,903
      General and
       administrative
       expenses             2,968         2,073         12,610          8,882
      Management fees         497           392          1,654          1,439
      Depreciation and
       amortization        11,600         7,341         34,378         26,978
      Gain on sale of
       vessel             (23,473)         -           (27,047)           -
         Total
          operating
          expenses            495        17,177         54,317         62,912

    Operating income       65,195        18,538        131,070         70,320

    Other (expense)
     income:
      (Loss) Gain
       from derivative
       instruments           (146)          107         (1,265)           108
      Interest income         729         1,049          3,507          3,129
      Interest expense     (8,847)       (3,176)       (26,503)       (10,035)
         Other (expense)
         income:           (8,264)       (2,020)       (24,261)        (6,798)

    Net income            $56,931       $16,518       $106,809        $63,522

    Earnings per
     share - basic          $1.99         $0.65          $4.08          $2.51

    Earnings per
     share - diluted        $1.98         $0.65          $4.06          $2.51

    Weighted average
     shares
     outstanding -
     basic             28,676,374    25,302,154     26,165,600     25,278,726

    Weighted average
     shares
     outstanding -
     diluted           28,825,746    25,390,662     26,297,521     25,351,297


                                     December 31,   December 31,
                                         2007          2006
    BALANCE SHEET
     DATA:                            (unaudited)
    Cash                                 $71,496     $73,554
    Current assets,
     including cash                      267,594      88,118
    Total assets                       1,653,272     578,262
    Current liabilities,
     including current portion
     of long-term debt                    70,364      15,173
    Total long-term
     debt, including
     current portion                     936,000     211,933
    Shareholders' equity                 622,185     353,533


                                       Twelve Months Ended
                                      December 31,  December 31,
                                         2007          2006
                                     (unaudited)

    Net cash provided by
     operating activities              $120,862      $90,068
    Net cash used in investing
     activities                        (984,350)     (82,840)
    Net cash provided by
     (used in) financing activities     861,430      19,414



                         Three Months Ended             Twelve Months Ended
                       December 31,  December 31,   December 31,  December 31,
                           2007          2006          2007           2006
    FLEET DATA:              (unaudited)                   (unaudited)
    Total number of
     vessels at end
     of period               27            20           27              20
    Average number
     of vessels (1)        23.0          18.7         20.4            17.4
    Total ownership
     days for fleet (2)   2,115         1,722        7,434           6,363
    Total available
     days for fleet (3)   2,083         1,675        7,314           6,283
    Total operating
     days for fleet (4)   2,054         1,668        7,220           6,237
    Fleet
     utilization (5)       98.6%         99.6%        98.7%           99.3%


    AVERAGE DAILY
     RESULTS:
    Time charter
     equivalent (6)     $31,140       $20,435      $24,650         $20,455
    Daily vessel
     operating
     expenses per
     vessel (7)           3,824         3,415        3,716           3,285


                         Three Months Ended           Twelve Months Ended
                     December 31,   December 31,   December 31,   December 31,
                         2007            2006          2007            2006
                       (Dollars in thousands)       (Dollars in thousands)
    EBITDA
     Reconciliation:         (unaudited)           (unaudited)
     Net Income         $56,931       $16,518     $106,809         $63,522
     + Net interest
        expense           8,118         2,127       22,996           6,906
     + Depreciation
        and
        amortization     11,600         7,341       34,378          26,978
     + Amortization
        of nonvested
        stock
        compensation        438           255        2,078           1,589
     + Amortization
        of value of
        time
        charters
        acquired        (4,880)           466       (5,139)          1,850
       EBITDA (8)       72,207         26,707      161,122         100,845

    (1) Average number of vessels is the number of vessels that constituted
        our fleet for the relevant period, as measured by the sum of the
        number of days each vessel was part of our fleet during the period
        divided by the number of calendar days in that period.
    (2) We define ownership days as the aggregate number of days in a period
        during which each vessel in our fleet has been owned by us. Ownership
        days are an indicator of the size of our fleet over a period and
        affect both the amount of revenues and the amount of expenses that we
        record during a period.
    (3) We define available days as the number of our ownership days less the
        aggregate number of days that our vessels are off-hire due to
        scheduled repairs or repairs under guarantee, vessel upgrades or
        special surveys and the aggregate amount of time that we spend
        positioning our vessels. Companies in the shipping industry generally
        use available days to measure the number of days in a period during
        which vessels should be capable of generating revenues.
    (4) We define operating days as the number of our available days in a
        period less the aggregate number of days that our vessels are off-hire
        due to unforeseen circumstances. The shipping industry uses operating
        days to measure the aggregate number of days in a period during which
        vessels actually generate revenues.
    (5) We calculate fleet utilization by dividing the number of our operating
        days during a period by the number of our available days during the
        period. The shipping industry uses fleet utilization to measure a
        company's efficiency in finding suitable employment for its vessels
        and minimizing the number of days that its vessels are off-hire for
        reasons other than scheduled repairs or repairs under guarantee,
        vessel upgrades, special surveys or vessel positioning.
    (6) We define TCE rates as our net voyage revenue (voyage revenues less
        voyage expenses) divided by the number of our available days during
        the period, which is consistent with industry standards. TCE rate is a
        common shipping industry performance measure used primarily to compare
        daily earnings generated by vessels on time charters with daily
        earnings generated by vessels on voyage charters, because charterhire
        rates for vessels on voyage charters are generally not expressed in
        per-day amounts while charterhire rates for vessels on time charters
        generally are expressed in such amounts. Since some vessels were
        acquired with an existing time charter at a below-market rate, we
        allocated the purchase price between the vessel and an intangible
        liability for the value assigned to the below-market charterhire.
        This intangible liability is amortized as an increase to voyage
        revenues over the minimum remaining term of the charter.
    (7) We define daily vessel operating expenses to include crew wages and
        related costs, the cost of insurance expenses relating to repairs and
        maintenance (excluding drydocking), the costs of spares and consumable
        stores, tonnage taxes and other miscellaneous expenses. Daily vessel
        operating expenses are calculated by dividing vessel operating
        expenses by ownership days for the relevant period.
    (8) EBITDA represents net income plus net interest expense, income tax
        expense, depreciation and amortization, amortization of nonvested
        stock compensation, and amortization of the value of time charter
        acquired. EBITDA is included because it is used by management and
        certain investors as a measure of operating performance. EBITDA is
        used by analysts in the shipping industry as a common performance
        measure to compare results across peers. Our management uses EBITDA as
        a performance measure in consolidating internal financial statements
        and it is presented for review at our board meetings. EBITDA is also
        used by our lenders in certain loan covenants. For these reasons, we
        believe that EBITDA is a useful measure to present to our investors.
        EBITDA is not an item recognized by U.S. GAAP and should not be
        considered as an alternative to net income, operating income or any
        other indicator of a company's operating performance required by U.S.
        GAAP. EBITDA is not a source of liquidity or cash flows as shown in
        our consolidated statement of cash flows. The definition of EBITDA
        used here may not be comparable to that used by other companies.
Genco Shipping & Trading Limited's Fleet

Our current fleet consists of four Capesize, seven Panamax, three Supramax, six Handymax and eight Handysize drybulk carriers with an aggregate carrying capacity of approximately 1,909,000 dwt. Our current fleet contains six groups of sister ships, which are vessels of virtually identical sizes and specifications. We believe that maintaining a fleet that includes sister ships reduces costs by creating economies of scale in the maintenance, supply and crewing of our vessels. As of December 31, 2007, the average age of our current fleet was 6.8 years, as compared to the average age for the world fleet of approximately 16 years for the drybulk shipping segments in which we compete. All of the vessels in our current fleet are currently on long-term time charters with an average remaining life of approximately 19.5 months as of December 31, 2007.

The following table reflects the current employment of Genco's current fleet as well as the employment or other status of vessels expected to join Genco's fleet:

                                                      Cash  Revenue
                  Year                      Charter   Daily  Daily  Expected
                  Built                    Expiration Rate   Rate   Delivery
        Vessel              Charterer         (1)      (2)    (3)     (4)

    Capesize
     Vessels
                            Cargill
    Genco                   International   December
     Augustus     2007      S.A.              2009      45,263   62,750   -

                            Cargill
    Genco                   International   January
     Tiberius     2007      S.A.              2010      45,263   62,750   -

    Genco London            SK Shipping Co., August
                  2007      Ltd.               2010     57,500   64,250

    Genco Titus             Cargill
                            International   September
                  2007      S.A.              2011     45,000(5) 46,250   -

                            Cargill         54 to 62
    Genco                   International  months from                   Q1
     Constantine  2008(6)   S.A.         delivery date 52,750(7)        2008

                            To be
    Genco                   determined                                   Q4
     Hadrian      2008(6)   ("TBD")           TBD          TBD          2008

    Genco                                                                Q2
     Commodus     2009(6)   TBD               TBD          TBD          2009

                                                                         Q2
    Genco Maximus 2009(6)   TBD               TBD          TBD          2009

    Genco                                                                Q3
     Claudius     2009(6)   TBD               TBD          TBD          2009

    Panamax
     Vessels
                            Cargill
    Genco                   International
     Beauty       1999      S.A.             May 2009   31,500             -

    Genco Knight  1999      SK Shipping Ltd. May 2009   37,700             -

    Genco                                    December
     Leader       1999      A/S Klaveness    2008       25,650(8)          -

    Genco                                    February
     Trader(9)    1990      Baumarine AS     2008       25,750(8)          -

    Genco                 STX Panocean (UK)
     Vigour       1999       Co. Ltd.       March 2009  29,000(10)         -

    Genco                 STX Panocean (UK)
     Acheron      1999       Co. Ltd.       March 2008  30,000             -

    Genco                 Hanjin Shipping    December
     Surprise     1998       Co., Ltd.        2010      42,100(11)         -

    Supramax
     Vessels

    Genco
     Predator     2005    Intermare         February
                           Transport GmbH    2008       22,500(12) 47,200  -

                          Oldendorff GmbH & 3 to 5
                          Co. KG.           months from
                                            delivery
                                            to new
                                            charterer   55,000
                        Hyundai Merchant
    Genco                  Marine           November
     Warrior 2005         Co. Ltd.           2010       38,750             -

    Genco               Pacific Basin
     Hunter  2007       Chartering Ltd.    March 2008   65,000             -

    Handymax
     Vessels

    Genco Success 1997                     March 2008/
                        Korea Line         February     24,000/
                        Corporation         2011        33,000(13)         -

    Genco               Pacific Basin
     Carrier     1998   Chartering Ltd.   March 2008    24,000             -

    Genco               Pacific Basin
     Prosperity  1997  Chartering Ltd.    April 2008    26,000             -


                        Hyundai Merchant
    Genco                  Marine         March 2008    24,000(14)         -
     Wisdom     1997      Co. Ltd.        February 2011 34,500

    Genco               NYK Bulkship
     Marine     1996     Europe S.A.      March 2008     24,000             -

    Genco              Oldendorff GmbH &
     Muse       2001      Co. KG.         March 2008     58,000             -

    Handysize
     Vessels

    Genco               Lauritzen
     Explorer   1999     Bulkers A/S      August 2009   19,500             -

    Genco               Lauritzen
     Pioneer    1999     Bulkers A/S      August 2009   19,500             -

    Genco               Lauritzen
     Progress   1999     Bulkers A/S      August 2009   19,500             -

    Genco               Lauritzen
     Reliance   1999     Bulkers A/S      August 2009   19,500             -

    Genco               Lauritzen
     Sugar      1998     Bulkers A/S      August 2009   19,500             -

    Genco               Pacific Basin     November
     Charger    2005     Chartering Ltd.   2010         24,000             -

    Genco               Pacific Basin     November
     Challenger 2003     Chartering Ltd.   2010         24,000             -

    Genco               Pacific Basin     December
      Champion  2006     Chartering Ltd.   2010         24,000             -

    (1)  The charter expiration dates presented represent the earliest dates
         that our charters may be terminated in the ordinary course.  Except
         for the Genco Titus, under the terms of each contract, the charterer
         is entitled to extend time charters from two to four months in order
         to complete the vessel's final voyage plus any time the vessel has
         been off-hire. The charterer of the Genco Titus has the option to
         extend the charter for a period of one year.
    (2)  Time charter rates presented are the gross daily charterhire rates
         before the payments of brokerage commissions ranging from 1.25% to
         6.25% to third parties, except as indicated for the Genco Trader and
         the Genco Leader in note 8 below. In a time charter, the charterer is
         responsible for voyage expenses such as bunkers, port expenses,
         agents' fees and canal dues.
    (3)  For the vessels acquired with a below-market time charter rate, the
         approximate amount of revenue on a daily basis to be recognized as
         revenues is displayed in the column named "Revenue Daily Rate" and is
         net of any third-party commissions. Since these vessels were acquired
         with existing time charters with below-market rates, we allocated the
         purchase price between the respective vessel and an intangible
         liability for the value assigned to the below-market charterhire.
         This intangible liability is amortized as an increase to voyage
         revenues over the minimum remaining term of the charter.  For cash
         flow purposes, we will continue to receive the rate presented in the
         "Cash Daily Rate" column until the charter expires.
    (4)  Dates for vessels being delivered in the future are estimates based
         on guidance received from the sellers and/or the respective
         shipyards.
    (5)  The charter includes a 50 percent index-based profit sharing
         component.
    (6)  Year built for vessels being delivered in the future are estimates
         based on guidance received from the sellers and/or the respective
         shipyards.
    (7)  The Genco Constantine is scheduled to be on charter with Cargill
         International S.A., for 54 to 62 months at a gross rate of $52,750
         per day, less a 5% third party brokerage commission.  The charter
         also includes a 50 percent index-based profit sharing component.
    (8)  For the Genco Leader and the Genco Trader, the time charter rate
         presented is the net daily charterhire rate. There are no payments of
         brokerage commissions associated with these time charters.
    (9)  We have entered into an agreement to sell the Genco Trader to SW
         Shipping Co., Ltd. for approximately $44 million, less a 2% brokerage
         commission.  The delivery is expected to occur in the first quarter
         of 2008.
    (10) We have entered into a time charter for 23 to 25 months at a rate of
         $33,000 per day for the first 11 months, $25,000 per day for the
         following 11 months and $29,000 per day thereafter, less a 5% third-
         party brokerage commission. For purposes of revenue recognition, the
         time charter contract is reflected on a straight-line basis at
         approximately $29,000 per day for 23 to 25 months in accordance with
         generally accepted accounting principles in the United States, or
         U.S. GAAP. The time charter, commenced following the expiration of
         the vessel's previous time charter on May 5, 2007.
    (11) The new charter commenced following the expiration of the previous
         charter on January 31, 2008.
    (12) The Genco Predator is currently on charter with Intermare Transport
         GmbH at a gross rate of $22,500 per day. The charter is due to expire
         between February 2008 and March 2008.
    (13) We intend to extend the time charter for an additional 35 to 37.5
         months at a rate of $40,000 per day for the first 12 months, $33,000
         per day for the following 12 months and $26,000 per day for the next
         12 months and $33,000 thereafter less a 5% third-party brokerage
         commission. In all cases the rate for the duration of the time
         charter will average $33,000.  For purposes of revenue recognition,
         the time charter contract is reflected on a straight-line basis at
         approximately $33,000 per day for 35 to 37.5 months in accordance
         with generally accepted accounting principles in the United States,
         or U.S. GAAP.  The new charter will commence following the expiration
         of the previous charter on March 1, 2008.
    (14) We have reached an agreement to extend the time charter for an
         additional 35 to 37.5 months at a rate of $34,500 per day less a 5%
         third party brokerage commission.  The new charter will commence
         following the expiration of the previous charter on March 1, 2008.


Q4 2007 Dividend Announcement

The Company's Board of Directors declared a fourth quarter 2007 dividend of $0.85 per share payable on or about March 7, 2008 to all shareholders of record as of February 29, 2008. As previously announced, the Company plans to declare quarterly dividends to shareholders by each February, May, August and November, in amounts substantially equal to its available cash from operations during the previous quarter, less cash expenses for that quarter (principally vessel operating expenses and debt service) and any reserves the Board of Directors determines the Company should maintain. These reserves may cover, among other things: drydocking, repairs, claims, liabilities and other obligations, interest expense and debt amortization, acquisitions of additional assets and working capital. The Q4 2007 dividend of $0.85 equates to an annualized yield of 6.8% based on the closing price of Genco Shipping & Trading's common stock as of February 12, 2008 at $50.32.

John C. Wobensmith, Chief Financial Officer, commented, "We are pleased to once again increase our quarterly dividend and target rate for the year, which reflects the Company's significant earnings power and focus on seeking to provide consistent dividend growth over the long term. More notably we continue to grow our dividend while expanding our fleet. This success is a testimony to the sizeable cash flows we generate and retain as well as the ongoing support we receive from the banking and capital markets. During 2007, we further increased our financial flexibility by entering into a 10-year, $1.4 billion revolving credit facility at an attractive rate and completed an approximately $213.9 million equity offering that we used to pay down debt and ready the Company for future growth. Going forward, we intend to continue to seek to consolidate the industry in a manner that meets our strict earnings and cash flow criteria as well as return on capital hurdles. Complementing this proven approach, we intend to distribute sizeable dividends while looking for opportunities under our new share repurchase program to create additional shareholder value."

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited currently owns a fleet of 28 drybulk vessels consisting of four Capesize, seven Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 1,909,000 dwt. After the sale of the Genco Trader as well as the delivery of the five remaining Capesize vessels from companies within the Metrostar Management Corporation group, Genco Shipping & Trading Limited will own a fleet of 32 drybulk vessels, consisting of nine Capesize, six Panamax, three Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,700,000 dwt.

Conference Call Announcement

Genco Shipping & Trading Limited announced that it will hold a conference call on Thursday, February 14, 2008 at 8:30 a.m. Eastern Time, to discuss its 2007 fourth quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company's website, www.GencoShipping.com. To access the conference call, dial (877) 795-3635 or (719) 325-4835 and enter passcode 4694857. A replay of the conference call can also be accessed through February 28, 2008 by dialing (888) 203-1112 or (719) 457-0820 and entering the passcode 4694857. The Company intends to place additional materials related to the earnings announcement, including a slide presentation, on its website prior to the conference call.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following: (i) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (ix) the number of offhire days needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (x) the Company's acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under the Company's agreement to acquire the remaining five drybulk vessels from companies within the Metrostar Management Corporation group; (xii) the fulfillment of the closing conditions under Company's agreement to sell the Genco Trader; and other factors listed from time to time in our public filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2006, its quarterly reports on Form 10-Q and its reports on Form 8-K. Our ability to pay dividends in any period will depend upon factors, including the limitations under our loan agreements, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary.

SOURCE Genco Shipping & Trading Limited

CONTACT:
John C. Wobensmith, Chief Financial Officer, Genco Shipping & Trading Limited, +1-646-443-8555

Web site: http://www.gencoshipping.com
(GNK)